Case Status
Settled
Settlement Amount
$453.85 Million
Case Caption
In Re Glumetza Antitrust Litigation
Position
Co-Lead Counsel
Court
U.S. District Court for the Northern District of California
Judge Assigned
Hon. William Alsup
Case Number
1:19-md-05822-WHA
Defendant(S)
Bausch Health Companies Inc.
Salix Pharmaceuticals Ltd.
Salix Pharmaceuticals Inc.
Santarus Inc.
Assertio Therapeutics Inc.
Lupin Pharmaceuticals Inc.
Lupin Ltd.
File Date

ABOUT THE GLUMETZA LAWSUIT

The suit alleged Assertio and Bausch paid Lupin to delay entry and promised in return not to compete with an authorized generic for the first twelve months that Lupin’s generic was on the market. As a result, Glumetza purchasers – pharmaceutical wholesalers, pharmacies, insurance companies, and consumers – paid far more for brand Glumetza and, once it finally launched, generic Glumetza. By the end of July 2015, before Lupin launched its generic, Bausch had spiked the price of Glumetza by more than 800 percent.

Glumetza’s developer, Assertio, obtained several patents that it claimed cover Glumetza. In 2009, Lupin, the first company to file an Abbreviated New Drug Application (ANDA), sought FDA approval to market its generic version of Glumetza.

As the first filer, Lupin would have been statutorily entitled to 180 days as the only ANDA generic on the market upon FDA approval, though Assertio could launch an “authorized generic” – its brand drug under a generic label – and compete during those 180 days, resulting in lower prices for purchasers. Assertio sued Lupin for patent infringement, alleging Lupin would infringe its Glumetza patents. On Feb. 22, 2012, Lupin and Assertio (along with Santarus who had assumed responsibility for the commercialization of Glumetza) settled, with Assertio/Santarus paying Lupin to delay entry until February 2016 and Assertio/Santarus agreeing not to market an authorized generic for a year after Lupin launched. Lupin could charge higher prices without generic competition, at the expense of purchasers.

In mid-2015, before generic competition began, Bausch (having acquired Santarus) initiated price increases totaling approximately 800 percent. What had been a $6 tablet suddenly exceeded $50. And when Lupin entered, it took advantage of Glumetza’s high price, pricing just below Bausch until later generics entered and brought the price down.

In September 2021, Hagens Berman secured a settlement with Bausch Health Companies Inc., Salix Pharmaceuticals, Ltd., Salix Pharmaceuticals, Inc., Santarus, Inc., Assertio Therapeutics, Inc., Lupin Pharmaceuticals Inc. and Lupin Ltd. totaling $453.85 million on behalf of direct purchasers of Glumetza, resolving these allegations against the defendants.

TOP PHARMA LAW FIRM

Hagens Berman is one of the most successful litigation law firms in the U.S. taking on pharmaceutical companies and has achieved more than $325 billion in settlements against Big Pharma largest sellers and manufacturers for antitrust schemes, pay-for-delay, IP shams and other forms of wrongdoing that drive up the costs of prescription drugs for consumers and others.

CASE TIMELINE

$453.85 Million Settlement with Glumetza Defendants

Hagens Berman is pleased to announce settlements with Bausch Health Companies Inc., Salix Pharmaceuticals, Ltd., Salix Pharmaceuticals, Inc., Santarus, Inc., Assertio Therapeutics, Inc., Lupin Pharmaceuticals Inc. and Lupin Ltd. totaling $453.85 million. These settlements provide significant relief to direct purchasers of Glumetza, resolving allegations against the defendants that direct purchasers overpaid for brand and generic Glumetza due to an alleged conspiracy to suppress generic competition of the diabetes drug. Hagens Berman will continue to litigate on behalf of the class to recover further compensation from remaining defendants.

Judge Alsup preliminarily approved all three settlements on September 22, 2021. The final fairness hearing will be held on January 20, 2022.

Notice to Class Members Sent

Notice of class certification was sent to members of the direct purchaser class via mail and e-mail. 

Class Notice, Administration and Distribution Plan Approved

The Court approved the proposed class notification plan.

Direct Purchaser Class Certified

The Court certified the class of direct purchasers who purchased brand and generic Glumetza during the May 6, 2012 through August 15, 2020 period and appointed HBSS attorneys Lauren Barnes and Shana Scarlett Co-Lead Class Counsel, with Steve Shadowen of Hilliard & Shadowen and Joseph Vanek of Sperling & Slater.

First Amended Consolidated Complaint Filed

After the Court granted leave to amend, HBSS filed a first amended consolidated complaint on behalf of the proposed direct purchaser class.

Direct Purchasers Survive Motion to Dismiss

The Court denied defendants’ motion to dismiss as to the direct purchasers’ claims.

Interim Co-lead Counsel Appointed

The Court appointed Hagens Berman attorneys Shana Scarlett and Lauren Barnes  Interim Co-lead Counsel.

Consolidated Complaint Filed

HBSS filed a consolidated amended complaint on behalf of a proposed class of direct purchasers of brand and generic Glumetza.

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